MINOR

REPORT ON
DHL LOGISTICS SYSTEM

Submitted
In Partial Fulfillment of the requirements
For the Award of Degree of MBA
By
Manas Khanna
AUD1834
AMITY
UNIVERSITY, DUBAI

I, Manas Khanna, student of Amity University Dubai, hereby

assure that, I have completed this project on DHL logistics
system

for the partial fulfilment of Maters of Business

Administration and the information submitted is true to the

best of my knowledge & belief.

Manas Raj Khanna

AUD1834

OBJECTIVE OF THE STUDY

Essential:

To access the viability of logistics administration in DHL and to seat

check the association concerning the business.

To have an exhaustive comprehension of how logistics framework

functions in DHL

Auxiliary:

To think about Logistics Industry.

To comprehend the estimation of every association.

To know whether the clients are fulfilled by the current scope of

administration.

Extent OF THE STUDY:

With a specific end goal to comprehend the ideas of logistics as far as pragmatic
use and to witness into the how an organization or association utilizes logistics as
an imposing instrument to increase consumer loyalty, decrease general cost and
expand proficiency I chose "DHL" the world's driving dispatch Service Company. The
study is done just to see how DHL company use logistics framework Viably in their
business

COMPANY STRENGTHS

Strong Brand Image: In 1997, DHL turned into the worldwide express
transportation organization to acquire concurrent framework wide ISO
9001 accreditation in global quality benchmarks. DHL has likewise
added to their own particular quality framework that matches their
client's benchmarks.

Globalism: DHL works on a worldwide scale. They work in more than

220 nations. They give benefits that speak to the greater part of the
world. They have such an expansive business sector in which to work,
and along these lines acknowledge huge incomes. They can likewise
accomplish worldwide economies of scale.

eServices and Technology: DHL utilizes and keeps on scanning for new
innovation. They spend almost 10% of aggregate incomes, for data
innovation. DHL likewise has brilliant eServices that give access to
frameworks that guarantee clients have control and perceivability of
their supply chains at all times. Items can be followed, questioned and
requested on the web.

Corporate symbiosis: DHL has added to its own authoritative structure

to serve the worldwide business sector, which it has called "corporate
beneficial interaction." This methodology incorporates the
strengthening of the DHL work force at a neighborhood level, in the
meantime perceiving the relationship of the parts of DHL as a
corporate entity.

Smart-Truck Project: It is the system which permits DHL to convey

speedier. The information are transmitted straightforwardly to the
dynamic course arranging framework, which recalculates the courses,
contingent upon the present request circumstance and volume of
activity.

COMPANY WEAKNESS:

High Prices: DHL's costs are over their rivals. This can be a
shortcoming if their clients don't see a contrast in the middle of DHL
and its rivals' administrations.

Mistakes in Market-Share Estimate: The greatest shortcoming is DHL's

piece of the overall industry gauge. It is hard to assess notwithstanding
when the business sector is stagnant and contains couple of

contenders, and all piece of the overall industry evaluations ought to

be seen with meticulousness.

Weak Visibility: It has frail perceivability in the group contrasted and its
potential.

INDEX
1

INTODUCTION TO LOGISTICS....................................................1

1.1
1.2
1.3
1.4

Meaning of logistics
Origin and Definition of Logistics..
Importance of logistic management
Logistics Management and Supply chain ..
2
2.1
2.2
2.3
2.4

1
3
4
6

BACKGROUND OF DHL.........................................................9
History of DHL......................................................................10
The world's largest express and logistics Network................11
The DHL Indian Profile..........................................................12
Product and services of DHL.................................................14

3. INTEGATED

LOGISTICS

SYSTEM...............................................16

3.1 Inventory Flow..........................................................................17

3.2 Information Flow..................................................................18
Coordination Flow...............................................................18
Operating flow....................................................................20

4. SUPPLY CHAIN
4.1

MANAGEMENT..................................................21

DHL International Supply chain.

Reverse Logistics
Services Logistics
Inbound to Manufacturing
Medical device Distribution........
Distribution to store Management.... .
Engineering response......................................
4.2 Extended Supply Chain Services

23
24
25
26
27
27
27

28
4.3 Implementation Services .. 29
4.4 Performance Management

30

4.5 Outsourcing Projects . 30

4.6 Innovation of Supply Chain development.............................31
4.7 Solution for Customize end to end logistic worldwide .
5 TRANSPORTATION
...
5.1 Transportation functionality .
5.2 Principles ..

33
36
37
38

5.3 Transportation Infrastructure

40
5.4 OPTIMIZATION OF LOGISTICS WITH DHLROAD AND RAIL.
SOLUTIONS
...................................................................................................
44
5.5 Air and ocean freight solutions.............................................45
6 INVENTORY MANAGEMENT & WAREHOUSING.
6.1
Warehouse Infrastructure Network.
Multi User Centers ..
Strategic Part Centers (SPC)
Express Logistics Centers (ELC) .
6.2 Warehouse Management Solution .
Warehouse Management Systems.
Strategic Inventory Management .............................
Direct Express Inventory Management...
Repair Return Inventory Management ...
Cross Docking .

47
48
48
49
49
50
50
50
50
51
51

6.3 Inventory Optimization .

52

6.4 Special Warehouse solution ..

54 6.5 Outsourcing Projects. ....
55

VALUE-ADDED SERVICES...............................................................56
7.1 Co-Packaging.........................................................................56
7.2 Product Assembly..................................................................58
7.3 Other-Value added Service ...
59
7.4 External Performance Measurement.....................................60
7.5 Customer Perception Measurement.......................................60
8 Worldwide Parcel Express .
61
9. Recommendation ...
63
10 Conclusions............................................................................64
11 Bibliographies
65

INTRODUCTION
LOGISTICS Meaning:
The expression "logistics" starts from the old Greek "Zyo" ("logos"
"proportion, word, computation, reason, discourse, speech"). Logistics is
considered to have begun in the military's have to supply themselves with
arms, ammo and proportions as they moved from their base to a forward
position. In old Greek, Roman and Byzantine realms, there were military
officers with the title "Logistikas" who were in charge of monetary and
dispersion of supplies.
Logistics is related with getting the items and administrations where they are
required and when they are fancied. It is hard to fulfill any advertising or
producing without logistical backing. It includes the incorporation of data,
transportation, inventory, warehousing, material taking care of, and bundling.
The working obligation of logistics is the land repositioning of crude materials,
work in procedure, and completed inventories where required at the most
reduced cost possible. Logistics is drilled for a very long time subsequent to
sorted out movement started. Without logistics bolster no movement can be
performed to meet characterized objective. The present test is to perform
logistics experimentally so as to streamline advantages to the association.
Logistics is an arranging capacity of administration. Logistics capacity is worried
with taking items and administrations where they are required and when they
are required.
LOGISTICS Management:
Logistics administration is that part of the production network which arranges,
executes and controls the proficient, compelling, forward and in reverse
(converse) stream and capacity of merchandise, administrations and data
between the purpose of birthplace and the purpose of utilization keeping in
mind the end goal to meet clients' prerequisites rather to the clients'

enjoyment. An expert working in the field of logistics administration is known

as a logistician.
Logistics, as a business idea, advanced just in the 1950s. This was for the
most part because of the expanding multifaceted nature of supplying one's
business with materials, and shipping out items in an inexorably globalize
store network, calling for specialists in the field who are called Supply Chain
Logisticians. This can be characterized as having the right thing in the right
amount at the perfect time at the ideal spot at the right cost and to the right
target clients (consumer); and it is the exploration of procedure having its
vicinity in all areas of the business. The objective of logistics work is to deal
with the fulfillment of venture life cycles, supply chains and resultant
efficiencies. Logistics is Concerned with getting (or transmitting) the items and
administrations where they are required or when they are wanted. It is hard to
fulfill any advertising or fabricating without logistical backing. It includes the
mix of data, transportation, stock, warehousing, material taking care of, and
bundling. The working obligation of logistics is the geological repositioning of
crude materials, work in procedure, and completed inventories where required
at the most minimal cost conceivable.
Significance of logistics administrations:
1.

Logistics is the bed rock of exchange and business:

Without offering as well as purchasing there can be no exchange and

business. Purchasing as well as offering happens just when products are

2.

physically moved into as well as far from the business sector.

Take away logistical backing exchange and business will crumple.
Integrates logistical exercises:

In ordinary administration environment, different exercises of logistics

work in disengagement under various administration capacities. Every
pocket attempting to sub improves its targets at the expense of general

authoritative goals. Buying attempting to buy at least cost at the

expense of what is required by operations. Operations create expansive
amounts at least generation cost overlooking interest prompting fate
stock. Logistics capacity of administration brings every such capacity
under one umbrella pulling down entomb departmental obstructions.
3.

Competitive edge:

In the wildly focused environment logistics gives the edge. Because of

mechanical unrest the vast majority of the items are moving into
product markets. In an item market where cost is controlled by rivalry,
where there is no item separation regarding quality parameters like
execution and unwavering quality, where brands are verging on
immaterial, focused edge is tha t of accessibility of item and
administration as far as time, spot and amount.

4.

Leads to consumer loyalty:

Through prevalent client administration. Authoritative destinations of P

[Productivity],Q [Quality],C [Cost],D [Delivery],E [Employee Morale],F
[Flexibility],S [Safety],H [Health],E [Environment] are set to meet client
desires.

5.

Supports basic capacities like operations and showcasing:

Solid logistics support empowers an organization to move towards JUST

IN TIME generation framework for survival in an exceedingly focused
business sector

6.

Logistics wins or loses wars:

British lost American war of autonomy because of poor logistics

Rommel was beaten in the desert by predominant logistics operations

Company Profile
DHL is the worldwide pioneer in logistics - with all the more exceedingly
experienced experts at a bigger number of areas in a larger number of
nations than some other supplier.
They are the first decision for organizations searching for end to end logistics
arrangements and fantastic overhauling capacities. In the wake of uniting
with Excel in 2005, they are currently additionally the division's driving trendsetter - giving the phenomenal scope of forefront arrangements. They are
the overall business sector pioneer since they endeavor to convey all around
steady administrations of the most astounding quality.
History and foundation of DHL:

DHL are the first letters of the last names of the three organization

authors, Adrian Dalsey, Larry Hillblom and Robert Lynn.

In 1969, the three accomplices made little stride that would profoundly

affect the way the world works together.

The authors started to ship by boat papers via plane from San
Francisco to Honolulu, starting traditions leeway of the boat's freight
before the real entry of the boat and significantly evoking holding up
time in the harbor. Clients remained to spare a fortune. With this idea,
another

industry

was

conceived:

global

air

express,

the

fast

conveyance of records and shipments via plane.

The DHL Network kept on developing at an extraordinary pace. The
organization extended westbound from Hawaii into the Far East and
Pacific Rim, then the Middle East, Africa and Europe. By 1988, DHL was

at that point present in 170 nations and had 16,000 workers.

At the start of 2002, Deutsche Post World Net turned into the real
shareholder in DHL. Before the end of 2002, DHL was 100% claimed by
Deutsche Post World Net. In 2003, Deutsche Post World Net combined
the greater part of its express and logistics exercises intoDHL.
DHL Express worldwide
Employees

more than
124,000

Countries and territories

Hubs
Bases
Vehicles
Aircraft
Pack stations (only Germany)

more than 220

36
4700
72,000
350
900

DHL INDIA:
DHL Worldwide Express (India) Pvt Ltd is the No.1 global air express
administrations supplier in India, a position it has held since it started its
India operations in 1979. Today, DHL offers its clients the whole range of
express administrations from universal air express to top of the line logistics
arrangements including repair and return, key stock administration and
coordinate express stock. DHL India has more than 50,000 clients adjusted
through DHL's national system with its 1,000 in number ground staff, armada
of 400 vehicles and die hard loyalty focuses in Ahmadabad, Bangalore,
Chennai, Cochin, Jaipur, Hyderabad, Kolkata, Mumbai, New Delhi, Pune and
Tripura.
Items and administrations of DHL:
1. DHL Document Express (DOX):
This administration is perfect for shipments that are not subjected to
Customs affirmation at destinations, or have no business esteem or
don't require a permit.
2. DHL Express Worldwide Package (WPX):
This administration is utilized for shipments with business esteem or
those, which should be pronounced for Customs assessment. They
might be subjected to Customs review at destinations and might be
assessable or dutiable.
3. Kind sized Pack and Jumbo Junior:

This administration makes sending out simple. One box dispatched for
one level expense, anyplace on the planet. DHL Jumbo Box is for
shipments under 25kg and Jumbo Junior for shipments under 10kg.

4. Import Express:
This administration is a solitary window answer for everything
importing needs. DHL Import Express is an one window, one rate, and
one record, one cash benefit that empowers a shipment got from the
supplier's doorstep abroad and conveyed specifically to the client
anyplace on the planet.
5. Fashion First:
It encourages the import and fare of shipments providing so as to
weigh 20kg or more noteworthy reserve funds with an extensive
variety of imaginative and adaptable entryway - to-entryway
arrangements. Another component of Fast Forward is Trade Automated
Services (TAS), an online stage that gives thorough exchange and
traditions data in 50 key nations around the world, computes absolute
landed expenses of a shipment (counting obligation, charge and
different traditions related charges), creates import and trade
documentation, screens senders and recipients against government
records relating to embargoes and authorizes, and looks at a thing's
fare and import freedom costs and regulations to empower qualifying
sourcing choice.

Supply Chain Management

Definition:
"Production network administration is the administration of upstream and
downstream associations with suppliers and clients to convey better client
esteem at less cost than the inventory network all in all."
The store network is the system of associations that are involved through
upstream and downstream linkages, in the distinctive procedures and
exercises that create esteem as items and administrations in the hands of
extreme shopper.
Great configuration is at the heart of a powerful store network arrangement.
DHL has built up a notoriety for reliably creating imaginative arrangements
that streamline operations and enhance control. T beneficiary in-house
groups have added to the arrangements outline of a portion of the world's
driving brands and empowered to win key contacts.
DHL arrangements plan group offers a wide arrangement of ability and
administrations, from logistics system technique, transport design,
distribution center configuration and reenactment, through to operational
change and stock investigation.

1. Global Supply Chain:

DHL's universal inventory network administration arrangements are centered
around offering clients some assistance with taking expanded control of
worldwide inbound store network to augment the estimation of worldwide
and worldwide sourcing.
DHL helps clients:

Give perceivability of the upstream inventory network, and empower

prior choice making

Create a more spry store network, better ready to react to changes in

purchaser request
Reduce lead times, inventories, and related capacity costs

Client centered arrangements are developed from the accompanying center

administrations:

Origin

administration,

including:

seller

administration;

supplier

accumulations; traditions business; union administrations and esteem

included administrations
Global sending, including:

administration; European oversaw transport

Destination
administration,
including:

air/sea/street/rail

cargo

port

and

sending

and

demurrage

administration; traditions business; de-solidification and pre-retail

benefits; port to dissemination focus transportation; direct store

conveyance (US just)

Supply chain perceivability and administration, including: buy request
administration; RFID item following; special case administration;

arranging and determining; stock administration.

Global sending administrations are given over every significant course.

Reverse Logistics:

DHL's converse logistics arrangements offer clients some assistance with

planning, execute and control stream of materials and oversee related data,
go down the store network to recover values and guarantee the sheltered
transfer of merchandise. Things incorporate the recuperation of outdated or
non - operational white merchandise, for example, fridges, in addition to the
evacuation of old furniture on conveyance of new or substitution items.
Administrations include:
Roll in Management: de-establishment of completed products at the
client's site
Returns Management: getting, sorting, checking and overseeing
returned items
Express Delivery: Exchange of Dead On Arrival item
Service logistics:
Administration and

new

parts

DHL's

administration

and

new

parts

administration includes the administration of makers' new parts conveyed to

and from clients as indicated by pre-characterized administration levels or
guarantee concurrences on an one, two, four or eight-hour and following day
premise, 24 hours a day, seven days a week.
DHL works intimately with clients to overcome normal issues, for example,

Poor parts accessibility

High stock venture
Long lead times, complemented by worldwide sourcing
High levels of client returns
Poor perceivability, reporting and control
Cost control of the interest chain

Key administrations include:

International cargo sending

Domestic and provincial inbound conveyances
Inventory arranging, determining, obtainment and examination
Distribution focus operations
Outbound conveyance

The whole process is supported by a web-empowered electronic request

handling and arrange checking instrument.

Medical Device Distribution:

DHL nation based distribution centers for various makers to benefit a
nearby client base. This incorporates the receipt of item from nearby or
worldwide assembling destinations and downstream dissemination to
healing centers.
Distribution to stores administration:
DHL conveyances to store administrations are centered around offering
retailers some assistance with creating proficient and adaptable supply
binds to convey item to retail outl ets at large amounts of
administration. These arrangements are manufactured from a few
center administrations: reverse logistics accumulations; sortation;
preparing;

repair/renovation;

esteem

recuperation;

transfer

and

consistence.
2. Augmented store network administrations:
DHL gives physical logistics administrations as well as oversees other
upgraded store network administrations, enhancing efficiencies and
diminishing expenses.
Order Management:
Receipt, administration, execution, sequencing and dispatch of
requests in an auspicious way.
Call Center Management:
A Call Center oversees orders, screens deals exercises, gives client
benefits and works as a Help-work area.
Global Inventory Management
DHL gives the client a worldwide perspective of stock, subsequently
empowering educated choices in regards to the mien of stock.

Consolidated Billing Services

The production of a united and ordered receipt, taking into account all
administrations performed in a particular time-period by more than one
administration supplier, made accessible in a concurred design.

Freight and Customs Solutions

DHL's numerous years of involvement with global exchange
prerequisites and conventions, joined with the European Competence
Center and nation ability, gives clients the main edge in
administration, quality and administration in cross fringe exchanges.
3. Implementation Services:
Implementation and Project Management:
Execution begins by characterizing venture points, setting the
objectives and portraying the deliverables in subtle element. The
significant points in usage incorporate business forms, building, land,
IT frameworks, movement, HR, money and legitimate contemplations.
Quality Management:
Complete Quality Management is an administration system that
coordinates quality introduction into the entire structure and work
process of an organization by utilizing routines and methods of value
administration
Execution Management:
Execution administration is a key part of the store network. Measured
components are checked on as a framework, as every segment
collaborates with the various parts around it. Execution measuring
records chronicled execution as well as gives early sign of any
administration slippage. In this second part, the measures give a
valuab le commitment to DHL's Continuous Improvement Program.
Outsourcing Projects:
Outsourcing includes DHL assuming control and overseeing past in-house
logistics operations, including:
Distribution focuses
Transport operations
Back-office capacities
Supply chain administration capacities
After sales

DHL Solutions

DHL Solutions offers altered logistics answers for your whole store network.
Our complete review from maker supplier to retailer to shopper empowers
you to accomplish operational magnificence at each stage. Administrations
range from counseling and plan to administration and execution. They give
industry-particular skill and long haul encounter that enhance your business.
DHL Solutions sets the pace in Supply Chain Management with cutting edge
advancements, conveying redid business arrangements. Driving edge
frameworks guarantee consistent mix and ensure full straightforwardness
and control all through the whole production network.
Supply Chain
Management
Warehousing
Value Added
Services
Outsourcing
Distribution

Investigation, plan and building. Lead Logistics

Provider (LLP) and Lead Service Provider (LSP)
administrations.
Building, outline and administration. Seller
administration, without a moment to spare.
Request
administration,
quality
control,
outbound satisfaction, invert and return
logistics and different administrations.
Industry-particular local and transnational.
Arrange
and
armada
arranging
and
Assume control and administration of in-house
logistics including conveyance, transport, backoffice, store network and after deals.

DHL Supply Chain Corporate Information Solutions:

This division comprises of agreement logistics administrations and Corporate
Information Solutions.
Both specialty units concentrate on tailor-made client arrangements.
The specialty unit Supply Chain gives warehousing and transportation
administrations and in addition esteem included arrangements along the
whole inventory network for clients from different segments of industry,
including the key car, life sciences, innovation, quick - moving purchaser
products, retail, and mold divisions. The backup Williams Lea is the heart of
the specialty unit Corporate Information Solutions. The master for report
based outsourcing arrangements accumulates, digitalizes, prints, stores,
sorts, addresses, conceals, dispatches and files records of various kinds.
Williams Lea is likewise the right purpose of call for electronic invoicing and
showcasing administrations.

TRANSPORTATION
Transportation is the most noticeable of all elements of logistics and high
supporter to logistics cost. We can see trucks, holders and wagonloads of
material being moved from spot to put as an action specifically connected
with exchange and business. We ought to likewise welcome this is a
movement that adds most elevated measure of expense to the action of
making inputs and yields accessible to purchasers. Transportation capacity
moves the items to meet client desires at least cost. Transportation is a
standout amongst the most noticeable components of logistics operations.
Transportation gives 2 noteworthy capacities: Item development and Item
stockpiling.
Item Movement:
Whether the item is as materials, segments, gatherings, work-in-procedure,
or completed merchandise, transportation is important to move it to the
following phase of the assembling process or physically closer to a definitive
purchaser. An essential transportation capacity of item development is
climbing and down the worth chain. Since transportation uses transient,
money related, and ecological assets, it is vital that things moved just when
it genuinely improves the item esteem. Transportation includes the utilization
of worldly assets since item is difficult to reach amid the transportation
process. Such item, ordinarily alluded to as in-travel stock, is turning into a
noteworthy thought as an assortment of store network procedures, for
example, only in time and speedy reaction rehearses decrease producing
and conveyance focus inventories.
Transportation utilizes monetary assets in light of the fact that inner uses are
essential for private armadas or outside uses are required for business or
open transportation.
The significant target is to move item from a cause area to an endorsed
destination while minimizing worldly, monetary and ecological asset costs.
Misfortune and harm costs should likewise be minimized. In the meantime
the development must happen in such a way, to the point that takes care of
client requests with respect to conveyance execution and shipment data
accessibility.
Item Storage:
Provisional capacity in stationary vehicles or Vehicles continued proceeding
onward a circumlocutory course - Product stockpiling is costly in a vehicle. Be
that as it may, once in a while remembering general cost this is embraced.
When emptying and stacking is more costly than capacity
When storage room is constrained.

Principles:
There are two major standards directing transportation administration and
operations. They are economy of scale and economy of separation.
Economy of scale alludes to the trademark that transportation cost per unit
of weight abatements when the measure of the shipment increments.
E.g. truckload shipments cost less per pound than less - than-truckload
shipments. It is additionally for the most part genuine that bigger limit
transportation vehicles, for example, rail or water are less costly per unit of
weight than littler limit vehicles like engine or air.
Transportation economies of scale exist in light of the fact that settled costs
connected with moving a heap can be spread over the heap's weight. The
altered costs incorporate managerial expenses of taking the request; time to
position the vehicle for stacking or emptying, invoicing and gear cost. These
expenses are altered on the grounds that they don't change with shipment
volume.
E.g. assume the expense to oversee a shipment is $ l0.00. At that point the lpound shipment has a for every unit of weight expense of $l0.00, while the
l,000 pound shipment has a for every unit of weight expense of $0.0l. In this
manner, it can be said that an economy of scale exists for the l000 - pound
shipment.
Economy of separation alludes to the trademark that transportation cost per
unit of separation declines as separation increments.
E.g. a shipment of 800 miles will cost under two shipments (of the same
joined weight) of 400 miles. Transportation economy of separation is
additionally alluded to a se decreasing rule since rates or accuses decrease
of separation. The method of reasoning of separation economies is like that
for economies of scale.
Longer separations permit the altered costs to be spread over more miles,
bringing about lower general per mile charge. These standards are essential
contemplations while assessing elective transportation methodologies or
working practices. The goal is to expand the measure of the heap and the
separation that is dispatched while as yet meeting client administration
desires.

Transport Infrastructure
Transportation foundation comprises of the privileges of-ways, vehicles, and
transporter associations that offer transportation administrations on a forcontract or inside premise. The way of the base likewise decides an
assortment of legitimate and financial qualities for every mode or multimodal
framework. A mode distinguishes the essential transportation strategy or
structure.
RAIL NETWORK
Following time long past times, railways have taken care of the biggest
number of ton - miles. As an aftereffect of the early foundation of a complete
rail system interfacing every one of the urban communities and towns,
railroads ruled the intercity cargo tonnage till World War II and sometimes of
Europe, Asia and Africa they even associated the nations. This early
prevalence empowered railroads over transport extensive shipments
financially.
Engine CARRIERS
Expressway transportation has expanded quickly since the end of Wor ld War
II. This is on the grounds that Motor transporter industry results from way toentryway working adaptability and velocity of intercity development. They
are even adaptable in light of the fact that they can work on every last sort
of roadways. In correlation to railways, engine carrie rs have generally little
altered interests in terminal offices and work on openly looked after
interstates. Despite the fact that the expense of permit charges, client
charges, and tolls are impressive, these costs are straightforwardly identified
with the quantity of over - the-street units and miles worked. The variable
expense per mile for engine transporters is high in light of the fact that a
different force unit and driver are required for every trailer or blend of
coupled trailers. Work prerequisites are additionally high in light of driver
wellbeing limitations and the requirement for significant dock work. Engine
transporters are most appropriate to handle little shipments moving short
separations.
WATER TRANSPORT
It is the most established method of transportation. To begin with it was the
cruising vessels, which was supplanted by steamboats in mid 1800's and by
diesel power in the 1920's. Household water transportation includes the
Great Lakes, waterways, and traversable streams. In each nation, less
framework miles exist for inland water than whatever other transportation
mode.

The primary point of preference of water transportation is the ability to move

to a great degree vast shipments. Water transport utilizes 2 sorts of vessels.
Profound water vessels, which are for the most part intended for Ocean and
Great Lakes use, and are confined to profound water ports for access.
Conversely, diesel-towed freight boats, which by and large work on
waterways and channels, have extensively more adaptability. Water
transport positions in the middle of rail and engine transporter in the settled
cost angle. In spite of the fact that water transporters must create and work
their own terminals, the privilege of-way is produced and kept up by the
legislature and results in moderate altered expenses when contrasted with
railroads and parkways.
The fundamental detriment of water transport is the constrained scope of
operation and speed. Unless the beginning and destination are adjacent,
supplement pull by rail or truck is required. The ability to convey high
payload at a to a great degree low variable expense puts this method of
transport sought after when low cargo rates are coveted and speed of travel
is an auxiliary thought.
AIR TRANSPORT
Air transport is the freshest and the slightest used method of transport. Its
significant favorable position being its rate, which is joined by high expenses.
An across the nation shipment through air requires just a couple of hours
complexity to days taken by other mean of transportation. The high cost of
transport can be exchanged off for rapid, which permits different
components of logistical configuration, for example, warehousing, stock to be
lessened or wiped out. Yet air transport stays even more a potential open
door than a reality since it is all that much underutilized.
The high cost of plane flying machine, combined with unpredictable nature of
cargo interest, has constrained the task of devoted planes to all - cargo
operations. However premium bearers give planes devoted to cargo
operations. This premium administration began off with records and has
moved onto huge packages, which is a perfect administration for firms with
countless quality items and time-touchy administration necessities.
FOR DHL:
DHL utilizes every one of the methods of transportations that is
Airways
Roadways
Waterways
Rail cargo

DHL has its own armada of planes and engine vans. Contingent on the last
destination where the merchandise need to at long last reach and the sort of
bundle the client has paid for, DHL utilizes the individual methods of
transport or a blend of both of these or all. At the end of the day the land
area and how quick the merchandise must be conveyed are the variables for
the last determination of methods of transportation. The idea of economies
of scale and economies of separation are both thought about if there should
be an occurrence of bigger dispatches where DHL gives a proper logistical
arrangement which helps in decreasing the general expense for the
customers.

DHL ROAD AND RAIL SOLUTIONS:

DHL Freight is a pioneer in European overland transport. Our mainland
wide system and extensive scope of items and administrations ensure
dependable transport. DHL Freight offers you normal administrations for
gathering age and a full scope of transport administrations for part-and
full-load shipments by street, rail and multi-purpose transportation.
They give extraordinary taking care of and transportation to
perishables, furniture, exchange reasonable or occasion hardware, and
in addition customized traditions leeway administrations in more than
350 workplaces crosswise over Europe. Cutting edge IT frameworks
give you adds up to shipment perceivability and higher conveyance
effectiveness. Our industry-particular ability and long haul experience
can enhance your profitability and streamline your operations. An
effective, high-bore organization with DHL Freight gives all of you the
focal points you have to streamline your logistics.

Air and sea cargo arrangements:

Whether you have to forward way to-entryway, air terminal to-air terminal or
port-to-port cargo, DHL Danzas Air and Ocean offers an exhaustive scope of
administrations regardless of the size, weight or measurements of your
products.
Consolidated with a broad toolbox of data administration frameworks and a
worldwide system of devoted control towers, our accomplished groups far
and wide can make the right logistics answer for your business.
DHL Danzas Air and Ocean is in post position to lead the eventual fate of air
and sea cargo logistics and sets exclusive requirements in quality and
security.

Inventory Management and Warehousing.

Inventory is an unused asset, which lies in stock without
participating in value adding process. Unused equipment, raw
material, WIP and Finished goods, consumables, spare parts,
bought out parts, tools and tackles, gauge and fixtures etc. In
India 9 to 12 months of sales quantity lies in the form of
Inventory [R/M, WIP, Bought out parts and Finished goods] as
against a few days in Japan and a month in the US and
Europe. In our country inventory is always viewed as asset
[working capital], in fact, though it is called an asset, it is a
big liability Warehousing was a customers function
conventionally anywhere in the world. Customer to protect
himself from shortages at the time of inclement weather
always used to store provisions and other utilities in his
house. Consumers own stores were underground cellars,
smoke houses to store variety of items. Poor communication
infrastructure was mainly the cause for this storage by
customer. Producers and tradesmen conveniently shrugged
off their responsibility for storage and passed it on to the
customer who was left with no option. Traditional concept of
warehouse as store or godown has undergone major change
now. Warehouse is considered a value adding facility now,
playing a remarkable role as a function of logistical
management.

Warehouse Infrastructure Network

Warehouse Management Solution
Inventory Optimization
Special warehouse solution
Outsourcing Projects

1. Warehouse Infrastructure Networks

DHL warehouse service supports inbound logistics, distribution
and aftermarket services in a way that improves inventory
management, reduces total operating costs and improves
cycle times.
DHL facilities offer our customers warehousing that is fully
integrated into the wider supply chain and meets demanding
service levels. This encompasses the design implementation
and operation for both dedicated and multi user sites.
Benefits include improvements in:

Customer service levels

Stock accuracy
Lead times
Redundant stock costs
Productivity responsiveness to a company's strategic needs

a. Multi User Centers

We provide a network of multi-user

warehouses,

enabling

manufacturers to hold inventory at local level, whilst avoiding

expensive, dedicated storage solutions. These facilities can
receive products from both local and global manufacturing
sites, providing downstream distribution.

b. Strategic Part Centers (SPC)

Our Strategic Part Centers (SPCs) are in-country facilities
offering:
1, 2 and 4 hour order fulfillment
Stock optimization across the complete network of SPCs
Guaranteed performance against agreed business rules
c. Express Logistics Centers (ELC)
Our Express Logistics Centers (ELCs) are regional centralized
facilities offering:

order processing
outsourced repair facilities
custom final assembly
kitting services

2. Warehouse Management Solutions:

a) Warehouse Management Systems
The Warehouse Management System (WMS) records all events
and actions in the receipt, handling and storage of products and
orders in a warehouse environment. The WMS also accurately
records the location
in

the

of

inventory

whilst

stored

warehouse. Our Prologs WMS manages all

critical processes in the warehouse, and is also an important

support for varied transport and distribution concepts (planning,
time

controlling,

booking

of

transport

capacity,

communication with customs and other authorities).

b)Strategic Inventory Management
Strategic Inventory Management (SIM) has been created to
deliver urgent shipments to main business areas within a 2 to
4 hour time frame, usually time critical spare parts with a high
value and high impact on business.
c) Direct Express Inventory Management
Direct Express Inventory (DEI) allows customers to centralize
stock in one warehouse and use express distribution to deliver
components the next day. Entire management is done by DHL.

d)Repair Return Inventory Management

Return & Repair Inventory (RRI) manages the physical flows for
Return material authorization. In this case, DHL will be
responsible for picking up the broken part, sending a new one,
bringing the broken part to a

repair centre and moving

repaired parts back int o stock.

e)Cross Docking
Cross-dock operations are facilities where shipments are
received from one mode of transport and transferred to
another mode, or where shipments complete one leg of a
journey prior to commencement of another journey. Shipments
are consolidated or deconsolidated. Product received into the
facility is not taken into inventory.

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3. Inventory Optimization:
Through effective inventory management, inefficiencies can be
driven out of the supply chain, overall costs reduced and high
service levels achieved. They optimize inventory at a line-item
level at every stage of the supply chain.
DHL focuses on driving results in:

Supplier management
Expediting
Order replenishment
Demand forecasting
Safety stock setting
Order pipeline monitoring
Excess stock management
Inventory optimization is supported by

inventory

management software that calculates 'line item risk profiles'

that measure the variability of demand and supply for each
line item within a customers inventory.
DHL offers:
Average of 20% inventory reduction and 8% improvement in
product availability

Reduced inventory and overhead costs

Improved sales, profitability and return on investment
High service standards
Better matching of supply with demand
More streamlined and responsive supply chain

Shared-user Warehousing
Our shared-user facilities are designed to meet the needs of
organizations of any size. Currently, we provide shared-user
services to leading manufacturers and retailers of medical
supplies, con sumer products,
chemicals

and

resources,

such

transportation,

industrial

equipment,

technology. Through sharing of DHL's

as

space,

customers

labour,

benefit

from

equipment

and

synergies

that

considerably reduce supply chain costs. This environment

returns significant value to

a small business requiring

distribution operations without

long

commitments,

or

large

term lease or capital

enterprise

handling

new

acquisition, product launches or seasonal overflow.

Campus Solutions
We

pioneered

the

campus

model

to

provide

regional

customers with a flexible solution designed to capitalize on

similar distribution channels, minimize labour costs, and
increase specialized equipment utilization. Campuses are
strategically located at key distribution points in North and
South America, Europe and select locations in Asia, allowing
for

expedited

consumers.

transit

times

to

large

concentrations

of

2. Special Warehouse Solutions

Vendor Hubs
warehousing and delivery of service parts, based on demand
pull. Vendor hubs are usually located in close proximity to the
manufacturing facility.

Reverse Centers
specially designated facilities for the receipt and handling of
returned parts for repair, recycling or disposal.

Bonded Warehousing
Bonded warehouses provide secure environments in which
customers' products can be held without immediate payment
of local duties and taxes.

Shared-user Warehousing
Our shared-user facilities are designed to meet the needs of
organizations of any size. Currently, we provide shared-user
services to leading manufacturers and retailers of medical
supplies, consumer products,
chemicals

and

resources,

such

transportation,

industrial

equipment,

technology. Through sharing of DHL's

as

space,

customers

labour,

benefit

from

equipment

and

synergies

that

considerably reduce supply chain costs. Consequently, the

customer

can

increase

efficiencies

throughout

their

distribution network and maintain a higher level of service to

their customers.

Outsourcing Projects
Outsourcing involves DHL taking over and managing previous
in -house logistics operations, including:

Distribution centers
Transport operations
Back-office functions
Supply chain management functions
After sales services

Value Added Services

Co packing
Product assembly
Other value added services
1. Co-packing
We offer a comprehensive selection of manufacturing and
packaging services through Power Packaging a DHL Company.
By integrating manufacturing and packaging operations within
their supply chains, our customers can:

Add flexibility
Improve service levels
Reduce costs
Accelerate time to mark
Increase asset utilization

In addition to these core packaging services, Power Packaging

brings a unique set of services and capabilities for
customers that

include:

a. Beverage manufacturing:
Blending, mixing and filling of hot and cold fill beverages and
concentrates in the following types of containers:

Plastic bottles (PET) and glass containers (10 oz up to 128 oz)

Shelf-stable containers (paperboard, plastic cup and bag-in-a-box)

b. Dedicated facility services:

Turnkey manufacturing solutions including:
Site selection/development
Facility and systems design
New facility start-up and operation
c. Other services:
Packaging and raw material sourcing, procurement and asse mbly
Batch/quality control tracking via digital easy -to-trace coding system
Full range of secondary packaging services

2. Product Assembly
Postponement, quick response and mass customization are
breakthrough business strategies enabled via
services.
centers

packaging

Integrating packaging operations into distribution

streamlines

fulfillment

reducing

cost,

enhancing

product visibility and control, and improving speed-to-market

and

flexibility

in

the

supply

chain. Packaging

services include:
Postponement packaging -

primary, secondary and

specialty components
Co-packing, kitting, assembly and repackaging
Retail-ready, point-of-purchase displays
Lot control via variable digital and laser printing
Machinery system engineering - labeling, bagging, carton
filling, club store packs, clamshells and printed and unprinted
film over -wraps
Make-to-order pallets
Product rework/redress

3. Other Value Added Services

a.Kitting/Pre-Assembling
Kitting is the addition of items such as accessories and
batteries to the product pack. Pre-assembling is completion of
a finished product from component parts or pre-programming
of products.

b.

Re-Working/Re-Packing

Repacking for a specific customer can include

repalletisation. Reworking is the modification of
products to suit a local market.

c. Packaging/Bundling
Packaging includes packing of products into suitable media for
transportation and retail display. Bundling is the assembly of a
number of pre-packaged products to make up an integrated
product offering.

d.

QA Control

Quality control ensures that product is received into and

dispatched from the warehouse in a suitable condition, free
from faults and defects.
e.

Labeling/Merchandising

The application of labels either to the product or to the

packaging. Merchandising can include the addition of price
stickers or promotional items ready for retail display.

External Performance Measurement

While

internal

measures

are

important

for

detailed

organizational monitoring, external performance measures are

also necessary to monitor, understand and maintain a focused
customer perspective and to gain innovative insights from
other

industries.

The

topics

of

customer

perception

measurement and best practice benchmarking, which address

these requirements, are discussed and illustrate d below.

Customer Perception Measurement

To succeed in any activities of business one has to always
cater to and satisfy the needs of the customer. To do so, it is
essential for one to know how the customer thinks in order to
meet his needs in a more satisfying manner. Therefore, an
important component of leading edge logistical performance is
the regular measurement of customer perceptions. Such
measures can be obtained through surveys or by systematic
order follow up. These surveys can be company - or industry
sponsored. Such surveys ask questions regarding the firms
and the competitors performance in general or for a specific
order

in

particular.

Most

of

the

surveys

incorporates

measurement of customer perceptions regarding availability,

performance-cycle

time,

information

availability,

problem

resolution and product support. The survey may be developed

and administered by the firm itself or by consultants, delivery
agents or industry organizations.

Worldwide Parcel Express.

International express door-to-door delivery overnight or
by the end of the next possible business day for goods
subject to Customs clearance.
One, reliable company makes international shipping
easy .
Need to get products, samples, or spares to someone fast?
Then trust DHLs Worldwide Parcel Express to expedite urgent
shipments from your door, through customs direct to the
receiver - virtually anywhere in the world. One company means
you eliminate all the hassles of international shipping. You
never lose sight of your shipments. And with DHLs customs
expertise, you get instant advice regarding local regulations
and customs documentation, ensuring the smooth clearance
of your goods. When it comes to delivering your companys
time - critical shipments and your reputation, rely on DHLs
Worldwide Parcel Express.

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One company to keep your business moving.

When you need to get your goods
delivered quickly, you dont need the
hassle of brokers or guessing the
answers
on
customs
forms.
With
Worldwide Parcel express, international
shipping couldn't be easier.
Benefit from the largest international express
network and more in-house customs
expertise than anyone else Experienced DHL
personnel ensure delivery overnight in most
locations or by the end of the next possible
day One price for door-to-door delivery
eliminates hidden costs so you can avoid
surprises for your customers and your
Finance Manager. Never lose sight of your
goods. Access tracking and delivery details
from virtually anywhere via the Internet, email, WAP, SMS or phone
Gain greater control over your
business.
ne company to handle your shipments
More efficient processes
Customs experience and advice to ensure
smooth clearance
Shorter lead times through direct distribution
Ability to invoice quicker and improve cash flow.

RECOMMENDATION

1. ENHANCE THE SMART-TRUCK PROJECT

Because of the stage of recession and high
the companies need to make

competition,

difference to have

new

customers and increase their market share. To invent

completely new product can be very expensive and take
very much time. So, making little difference on the current
product or service can be better. At this time, we need to
talk about innovation.
As a CEO of DHL Logistics, enhancing the SmartTruck Project is going to be my first strategy. This project will
allow our company to deliver faster and cut cost by using
less fuel. To achieve this goal, we will follow some steps:
a. Increase the budget of R&D 10%.
b. Prepare an office for a new innovation team and assign a
leader to work on this project.
c. Also pay premium for new and creative ideas whoever
gives it (even juniors). So this will provide us innovative
atmosphere
2. AQUIRE SMALL - SIZE LOGISTICS COMPANIES:
By acquiring small local companies in different countries like
China, India, USA, will give us precense in that countries. Also,
this will decrease the threat of restrictions in those companie.
Even they are small companies; they can have creative
solutions to different problems. So we are acquiring new brains
at the same time. We can get some ideas from them to improve

our skills. I mean we are not firing people who were working
there actually; we are hiring them to work with us.

Conclusion
Logistics is one the most important and integral part of any
organisations strategy and function. When the logistical process
is carried out accurately then not only the company reduces
the production cost but a lso improves the efficiency and
customer satisfaction. Overall logistics management is very
important for todays highly competitive and cut - throat
corporate world.
DHL has the worlds largest express and logistics Network.
Over

the past decades it had turned delivering goods into a

finely oiled process. Be it a book, pen, WIP material, drugs,

hazardous chemicals, clothes, documents, wild animals and any
other thing under the sun DHL delivers it. With a network
spanning 200 countries and with its private fleet of airplanes,
mobile vans, cargo ship carriers & even rail way automotives
in some countries DHL can handle any type of goods. Not only
has that with international network there come the hassle of
documentation and paperwork, standard packaging and other
formalities to adhere to. But DHL has its own department which
looks into the international laws and other formalities. In the
end what matters is delivering well in good condition at the door
step of the customer. A happy and satisfied customer makes
the business grow. Competitors have come and gone but DHL
has been able to keep its No 1 position intact. This is because of
its dynamic nature and attitude of maintaining good customer
relations.

Logistics

management

is

important

for

every

organization but more so DHL.

We have tried to incorporate all the facets of logistics
which propel DHL to be the best delievery and carriage -service

around the world. No wonder that DHL is head and shoulders

above all of its competitors!

a)
b)
c)
d)

Logistics and Supply Chain Management- Written by Martin Christopher

Indian Logistics Industry (2008) published by Cushman & Wakefield
BUSINESS LOGISTICS BARDI
Elements of Logistics Management- S.D.APHALE

Websites:
1. www.google.com
2. www.logisticmanagement.com
3. www.about.com
4. www.dhl.com
5. http://www.dpdhl.com/en/about_us/corporate_divisions/supply_chain.htm
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